John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Hallador Energy Is Undervalued Due To Extreme Negative Industry Sentiment

Hallador Energy (NASDAQ:HNRG) trades at a low single digit EBITDA multiple despite strong fundamentals. Instead of being the "best house in the worst neighborhood", HNRG is more one of the "most undervalued houses with attractive qualities in a neighborhood at its low point".

Company overview

HNRG (founded in 1951 as Kimbark Oil and Gas) merged with Hallador Exploration in 1989 and became Hallador Energy. In 2006, HNRG entered into a joint venture with Sunrise Coal (now a wholly-owned subsidiary) and shifted from oil and gas to coal.

Sunrise Coal operates the Carlisle Mine in Indiana and produces 3 million tons annually of high-quality (low-chlorine, high BTU) coal from the Illinois Basin, which includes Illinois, Indiana, and western Kentucky....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details